A New Chapter: Giving While Living
Warren Buffett has always played the long game, but now he’s playing it for the next generation. In a letter reported by CNBC, Buffett explained that he wants his children’s foundations to receive almost all of his wealth, and to do so before the reins of decision-making pass to future unknowns. As he put it himself:
« This would increase their odds of having almost all of my fortune before other administrators replace them. »
True to form, Buffett is not leaving any loose ends. The four family foundations on the receiving end are:
- The Susan Thompson Buffett Foundation
- The Sherwood Foundation
- The Howard G. Buffett Foundation
- The NoVo Foundation
According to CNBC, he converted 1,800 Berkshire Hathaway ‘A’ shares into a jaw-dropping 2.7 million ‘B’ shares, donating them to these four foundations. That donation alone is valued at over $1.3 billion. Hardly pocket change—even for Oracle of Omaha standards.
Passing the Torch at Berkshire Hathaway
On the corporate side, Buffett is making sure Berkshire Hathaway stays as steady as a Nebraska cornfield (even after he steps back). He plans to retire as CEO at the end of December, remaining as chairman. His hand-picked successor? Greg Abel, aged 63, has earned Buffett’s full confidence.
Buffett wrote candidly in his letter:
« I would like to retain a significant amount of ‘A’ shares until the Berkshire shareholders develop the same trust in Greg that Charlie and I have long had. »
This is a tribute both to Greg Abel and to Charlie Munger, Buffett’s late business partner of many decades, who passed away two years ago.
The Traditions Continue
Abel isn’t just inheriting the keys to the Berkshire empire. He’ll also be writing Berkshire’s traditional annual letters to shareholders—an institution since 1965. But fear not: Warren Buffett says he’ll keep penning his famous Thanksgiving message (because some traditions deserve to outlast CEOs).
Looking to the Future—With Characteristic Calm
On the health front, Buffett noted that he is feeling « generally well. » Ever the optimist, he took the moment to reaffirm Berkshire Hathaway’s durability. Since taking over the struggling textile mill in 1965, he’s turned the company into a $1 trillion conglomerate (that’s trillion, with a “T”), with its fingers in insurance, railroads, utilities, and recognizable consumer brands.
Buffett being Buffett, he didn’t shy away from reminders about the pitfalls—even for a company as big as Berkshire:
« The price of our stock will fluctuate unpredictably, sometimes dropping by about 50%, as has happened three times in 60 years under current management. Don’t lose heart—America will bounce back, as will Berkshire’s stock. »
There you have it: sage advice, grounded optimism, and a legacy in transition—served with a large helping of humility and, as always, a side of sound financial sense.
John is a curious mind who loves to write about diverse topics. Passionate about sharing his thoughts and perspectives, he enjoys sparking conversations and encouraging discovery. For him, every subject is an invitation to discuss and learn.
